Nikkei recovers sharply and jumped more than 350 points after Trump and Xi Jinping meeting. US and China are set to restart trade talks. US President said that existing tariffs will remain in place while negotiations going on and suspend new tariffs. The index hits a high of 21703 and is currently trading around 21671.
US Market- The Wall Street futures are trading higher on trade optimism with Dow Jones and S&P500 closed at 26800 (0.40%) and 2965 (0.47) higher fresh all-time high.
Japanese Yen- USDJPY has shown a good jump of nearly 100 pips. the near term resistance is around 108.51 and any break above targets 109. The pair is still in bearish mode and any reversal can be seen only above 109. It is currently trading around 108.25.
Shanghai composite- Shanghai has shown a good gap up after the G20 meeting and is trading well above 3012 high made on Jun 24th 2019. This confirms bullish continuation and a jump till 3100 possible. It is currently trading around 3034.
Technically, the index is facing strong support around 21494 (55- day EMA) and any violation below will drag the Nikkei till 21252 (200- day MA)/21000.
On the higher side, near term resistance is around 22000 and any violation below this level will take the index till 22250/22480.
It is good to buy on dips around 21450 with SL around 21200 for the TP of 22000.
